Relating to certain statutes of limitations for criminal offenses, including the statute of limitations for certain fraud offenses.

BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The nature of financial fraud makes detection inherently difficult, as perpetrators deliberately conceal their actions. Victims often do not realize that they have been defrauded until well after the offense occurs, and only then do they report it to law enforcement. However, the statute of limitations begins at the time of the fraudulent act, not when it is discovered, delaying the start of investigations and often preventing prosecution due to the statute of limitations expiring.

These investigations are time-intensive, frequently requiring the acquisition and review of out-of-state banking and credit card records. Each round of analysis often uncovers new leads and additional victims, requiring further subpoenas and prolonging the process. It is common for such investigations to take more than a year, sometimes significantly longer.

S.B. 2798 addresses this issue by extending the statute of limitations for all crimes within Chapter 32 of the Penal Code (Fraud) to seven years. This includes offenses such as forgery (�32.21), credit and debit card abuse (�32.31), fraudulent transfer of a motor vehicle (�32.34), and others. A number of these crimes already have a seven-year statute of limitations when the victim is a financial institution, providing more legal protection than private citizens. This measure uniformly protects private citizens and financial institutions alike and gives victims, law enforcement, and prosecutors amply time for these cases to be reported, investigated, and prosecuted.

As proposed, S.B. 2798 amends current law relating to certain statutes of limitations for criminal offenses, including the statute of limitations for certain fraud offenses.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Reenacts Article 12.01, Code of Criminal Procedure, as amended by Chapters 93 (S.B. 1527), 118 (H.B. 467), 127 (H.B. 1207), 422 (H.B. 1769), 520 (H.B. 3025), 689 (H.B. 1506), 704 (H.B. 2019), 709 (H.B. 2190), 768 (H.B. 4595), 830 (H.B. 2187), 885 (H.B. 4635), and 1041 (S.B. 129), Acts of the 88th Legislature, Regular Session, 2023, and amends it as follows:

Art. 12.01. FELONIES. Authorizes felony indictments, except as provided in Articles 12.015 (Racketeering and Unlawful Debt Collection) and 12.03 (Aggravated Offenses, Attempt, Conspiracy, Solicitation, Organized Criminal Activity), to be presented within these limits, and not afterward:

(1)-(2) makes nonsubstantive changes to these subdivisions;

(3) seven years from the date of the commission of the offense:

(A) an offense under Chapter 32 (Fraud), Penal Code, except as provided by Subdivision (2)(C) (relating to forgery or the uttering, using, or passing of forged instruments); or

(B)-(F) makes nonsubstantive changes to these paragraphs;

(4) five years from the date of the commission of the offense:

(A)-(B) makes no changes to these paragraphs; and

(C)-(D) redesignates existing Paragraphs (B-1) and (C) as Paragraphs (C) and (D) and makes no further changes;

(E) abandoning or endangering an elderly or disabled individual, rather than a child, elderly individual, or disabled individual; or

(F)-(I) redesignates existing Paragraphs (E)-(H) as Paragraphs (F)-(I);

(5) makes no changes to this subdivision;

(6) 20 years from the 18th birthday of the victim of one of certain offenses, including trafficking of a child, rather than persons, under certain provisions; or

(7)-(10) makes nonsubstantive changes to these subdivisions.

Deletes existing text authorizing felony indictments, except as provided in Articles 12.015 and 12.03, to be presented within certain limits, and not afterward, including seven years from the date of the commission of the offense: misapplication of fiduciary property or property of a financial institution; fraudulent securing of document execution; false statement to obtain property or credit under Section 32.32 (False Statement to Obtain Property or Credit or in the Provision of Certain Services), Penal Code; credit card or debit card abuse under Section 32.31 (Credit Card or Debit Card Abuse), Penal Code; fraudulent use or possession of identifying information under Section 32.51 (Fraudulent Use or Possession of Identifying Information), Penal Code; or exploitation of a child, elderly individual, or disabled individual under Section 32.53 (Exploitation of Child, Elderly Individual, or Disabled Individual, Penal Code.

SECTION 2. Provides that the change in law made by this Act does not apply to an offense if the prosecution of that offense becomes barred by limitation before the effective date of this Act. Provides that the prosecution of that offense remains barred as if this Act had not taken effect.

SECTION 3. Effective date: September 1, 2025.